UK house sales rose 15.6 per cent in August following the roll-out of the government’s Stamp Duty Land Tax holiday, which helped to protect almost 750,000 jobs in the housing sector and wider supply chain, new HM Treasury data found.
The August increase followed a 14.5 per cent rise in July as more people decided to buy a new home or move house after the UK chancellor Rishi Sunak unveiled a break on SDLT for residential properties worth up to £500,000 (Dh2.3 million) at the start of July that runs until March 31 next year.
“Every home sold means more jobs protected … But this isn’t just about the housing market," Mr Sunak said in a statement on Tuesday. “Owners doing up their homes to sell and buyers reinvesting stamp duty savings to make their new house feel like a home are also firing up local businesses, supporting, creating and protecting jobs across the country.”
The stamp duty holiday is expected to also protect almost 750,000 jobs, benefitting businesses in the housing chain such as housebuilders, estate agents, tradespeople, DIY retailers and removal firms.
Retail sales data increased 0.8 per cent in August, according to the Office for National Statistics last week, with spending on household goods and home improvements experiencing a 9.9 per cent jump in sales when compared to pre-pandemic February levels.
Meanwhile, average house prices jumped 3.4 per cent over the year to June with the average house price at £237,834, £8,000 higher than the same month last year, the ONS said.
The SDLT holiday means that nine in 10 people buying their first home or moving up the property ladder will pay no stamp duty at all, with the measure delivering an average saving of £4,500, HM Treasury said.
The Treasury has announced that residential property transactions rose by 15.6% in August. The increase in transactions came after the Chancellor announced a stamp duty holiday at the start of July that will last until March next year.
“The stamp duty holiday is just one of several factors driving up house-buying activity at the moment. As we saw over the summer, there was a great deal of pent-up demand in the housing market as a result of the first lockdown, and the stamp duty holiday has further incentivised people to upgrade their properties, particularly as more of us are now working from home," said Nisha Vaidya, a mortgage expert at Bankrate UK.
“The surge in house-buying activity has driven prices to record highs, and many potential first-time buyers are now finding it much harder to get on the property ladder. Not only that, banks have also tightened their lending criteria in response to the economic recession."
Thirty-seven per cent of Britons say now is a good time to buy a property, according to a recent study by the Building Societies Associations, compared to 25 per cent in June.
A separate study from tradesmen site Checkatrade found that more than one in 10 Britons hope to buy a new home by the end of March 2021, with 33 per cent hoping to use the cash saving from the tax holiday on home improvements and renovations.
“Since the Government’s stamp duty changes came into effect earlier this year, we’ve seen record numbers of home improvement enquiries to the site suggesting that consumers are planning to reinvest their stamp duty savings straight back into their homes," said Mike Fairman, chief executive at Checkatrade.
Meanwhile, private housing output rose by about 30 per cent in July compared to June, making it the single largest contributor to the monthly growth in construction output that month, HM Treasury said.
Killing of Qassem Suleimani
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
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UAE currency: the story behind the money in your pockets
Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
Story of 2017-18 so far and schedule to come
Roll of Honour
Who has won what so far in the West Asia rugby season?
Western Clubs Champions League
Winners: Abu Dhabi Harlequins
Runners up: Bahrain
Dubai Rugby Sevens
Winners: Dubai Exiles
Runners up: Jebel Ali Dragons
West Asia Premiership
Winners: Jebel Ali Dragons
Runners up: Abu Dhabi Harlequins
UAE Premiership Cup
Winners: Abu Dhabi Harlequins
Runners up: Dubai Exiles
Fixtures
Friday
West Asia Cup final
5pm, Bahrain (6pm UAE time), Bahrain v Dubai Exiles
West Asia Trophy final
3pm, The Sevens, Dubai Hurricanes v Dubai Sports City Eagles
Friday, April 13
UAE Premiership final
5pm, Al Ain, Dubai Exiles v Abu Dhabi Harlequins
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The specs
- Engine: 3.9-litre twin-turbo V8
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- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The specs
Engine: 1.4-litre 4-cylinder turbo
Power: 180hp at 5,500rpm
Torque: 250Nm at 3,00rpm
Transmission: 5-speed sequential auto
Price: From Dh139,995
On sale: now
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Williams at Wimbledon
Venus Williams - 5 titles (2000, 2001, 2005, 2007 and 2008)
Serena Williams - 7 titles (2002, 2003, 2009, 2010, 2012, 2015 and 2016)
